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Subway Franchisee in Ireland Loses Tax Case

10/04/2020

Bookfinders Ltd, a Subway franchisee in Ireland, requested a refund from value added tax payments on sandwiches served in stores.  At issue is the fact that rolls did not conform to the 1972 definition of ‘bread’ that would otherwise be exempted from VAT as a basic food.  The ruling of the Supreme Court of Ireland was based on the fact that bread in rolls served by Subway exceeded the statutory two percent sugar content as a proportion of flour in the dough.  Subway rolls contain up to 10 percent sugar in flour, disqualifying the company from the 9 percent VAT tax paid during 2004 and 2005.